Frank Holmes Talks Markets

Talk to your peers, institutional investors, and [they will say] “we don’t use technicals.” Not so. Their level of confidence, their level of enthusiasm is always greater when the 50-day [moving average] is above the 200-day. And their degrees of pessimism is when the 50-day is below the 200-day…So I think the crypto world is waiting for that turn…I think we’re coming to a bottom.

Frank Holmes, CEO of HIVE Blockchain

Frank Holmes wears many hats: analyst, fund manager, CEO. Stockhouse Media recently sat down with him to get his insights on a variety of topics: the blockchain/crypto space, general market conditions, and his views on the resources sectors.

Frank Holmes on using HIVE Blockchain as a “proxy” for cryptocurrency trading:

The quant funds today are 70% of the trading in NewYork. HIVE correlates with Bitcoin 70% of the time but correlates with Ethereum 95% of the time…It’s actually easier for them to trade HIVE than to get in and out…of these cryptocurrencies. I believe probably 25% of our volume is from these quant funds who use HIVE as a proxy. Look at the volume: 10 million, 10 million, 10 million [shares].

…on bond market conditions:

Right now we’re in that “fear trade” model of rising interest rates. What really amazes me is when you look at the [interest rate] spread of what will the European Union currencies will pay you, for 5-year/2-year/10-year government bonds and Japan – versus the U.S. I’ve never seen such a negative spread: how trillions of dollars in Japanese yen have a negative spread relative to the dollar.

…on The Golden Rule:

The “10 percent” Golden Rule. The Golden Rule has been good to other people and it will be good to you too…In the investment world, 10% [of portfolios] should be invested in gold and gold mining stocks. I am a big believer of that – for any investor. Rebalance once a year and maintain that 10%...It’s been an incredible investment. In this century, in the past 18 years, bullion has outperformed the S&P 500 2:1.